Traders under threat from City protesters

Businesses near the London Stock Exchange say they could be hit by a "catastrophic" loss of trade if anti-capitalist protests outside St Paul's Cathedral go on until Christmas.

Paternoster Square has been cordoned off by police since being targeted by the Occupy London Stock Exchange movement on Saturday. The protesters have set up camp outside St Paul's but the square - which hosts restaurants, bars and shops - has been closed off to passing trade. Some businesses say they could be forced to cut staff or shut.

Gerhard Jacobs, manager of the Paternoster Chop House, said trade had fallen 40 per cent after the square's management blocked most visitors.

He said: "As traders we feel they should be less strict on how they control the entrances. If it was like this at Christmas it would be catastrophic."

Giovanni Marcis, manager of Birley Sandwiches, said: "If it stays like this for another week we will need to trim down the staff." Paternoster Square management refused to comment. Protesters say their encampment is expanding and stands at 150 tents. They are making plans to set up a second camp nearby or move their base entirely if they run out of space outside St Paul's.